A systematic review [1] investigated the effect of private-sector participation (PSP) on infrastructure, including electricity and telecommunications. Of the outcomes listed, 70% were positive; around two-thirds were positive in relation to access and service quality, and slightly fewer for product quality. However, most of the studies were qualitative, and these produced more positive reports (84%) than the quantitative studies (40%). In relation to infrastructure overall, the review found that:

PSP on its own does not seem to have a significant impact on improvements in access and quality

Without financial support from the government, access to poor and rural consumers are affected as a result of PSP

Clearly identifying the objectives of PSP would help in appropriately handling the potential trade-offs between outcomes.

This suggests that:

Implementation of PSP should not be done in isolation but as a part of a broader reform strategy that includes regulatory reform and introduction of competition. PSP is not very effective in achieving the desired outcomes without corresponding changes in the market, institutional and governance structures

Higher improvements can be achieved in outcomes if incentives for improvements are inbuilt into PSP contracts

There should strong clarity on the objectives of implementing PSP given the potential trade-offs between different outcomes.

A further systematic review [2] examined the evidence on the effectiveness of different urban-planning approaches in providing access to electricity services in low-income or informal settlements in low- and middle-income countries (LMICs). Services provided by public or private agencies through centralised planning and implementation (top-down) appeared effective in individual studies for connecting populations to electricity, but this was not confirmed by meta-analysis. Qualitative synthesis of contextual factors suggest a need for the customisation of solutions to meet local needs, and better delivery of services by alternative/non-government service providers. Neighbourhoods without security of tenure are rarely served well top-down. Bottom-up approaches are also limited in this context, and also in Africa, where efforts may be hampered by particularly modest levels of economic development.